Datatec is an international ICT services group that has quietly positioned itself at the intersection of two defining trends in enterprise technology — AI and cybersecurity.
Operating across more than 50 countries through its two core divisions — Logicalis, which provides services and digital transformation solutions, and Westcon International, a value-added technology distributor — Datatec is no longer just a networking stalwart. It’s evolving into a critical infrastructure enabler for businesses undergoing digital shifts.
This evolution hasn’t been accidental. CEO Jens Montanana, who founded the company and continues to hold a significant personal stake, says the past decade has been about strategic clarity.
After years of aggressive merger & acquisition (M&A) activity, Datatec has streamlined its structure and sharpened its focus. Noncore assets, including a South African internet provider, have been sold. Operational systems have been aligned globally. The result is a leaner, more profitable organisation. Its most recent trading update reported a near-80% rise in earnings per share (EPS) and headline EPS year on year — a figure that underscores the success of its turnaround.
This transformation sets the stage for what may be Datatec’s most significant opportunity yet: the AI infrastructure wave. While much investor attention has focused on hyperscalers — cloud giants such as Amazon, Microsoft and Meta — Montanana points to a more dispersed and practical layer of AI adoption: enterprises bringing AI closer to their core operations.
“For AI to be truly useful, it needs to run where the data is — on-site, in data centres, across campuses,” he said in a recent interview. “Most organisations aren’t there yet. They don’t have the infrastructure to support it.”
For AI to be truly useful, it needs to run where the data is — on-site, in data centres, across campuses
— Jens Montanana
Datatec, through its vendor relationships and technical capabilities, is poised to fill that gap. It has deep, long-standing partnerships with companies such as Cisco, Hewlett Packard Enterprise and Dell — vendors now focused on delivering AI-ready infrastructure to enterprise environments. These systems go beyond simple computing power. They require network re-architecture, high-speed connectivity, edge computing capabilities and, crucially, the right integration and support services. Logicalis, in particular, is well placed to assist clients in designing, deploying and managing these modernised environments.
AI’s emergence also heightens the urgency around cybersecurity. As more business-critical functions become automated or augmented by AI models, the potential attack surface grows. “Cybersecurity is now the single biggest driver of our business,” Montanana says. “We’re seeing early signs of machine-driven attacks — threat actors leveraging automation and AI to probe vulnerabilities, exploit networks and scale attacks in ways that weren’t previously possible.”
In this landscape, traditional reactive security models fall short. Datatec is investing in next-generation cybersecurity tools and services that combine threat detection, AI-based monitoring and real-time response mechanisms.
This twin focus — enabling AI infrastructure and defending it — is redefining what kind of business Datatec is. No longer just a distributor or systems integrator, it is increasingly acting as a strategic adviser and implementation partner for enterprises modernising their digital backbone.
This pivot is also reflected in its acquisition strategy. Rather than scaling for the sake of growth, Datatec now targets smaller, skill-specific acquisitions — especially in areas such as AI consulting, data science integration and cybersecurity expertise. The aim is to rapidly build capability without waiting for organic upskilling to catch up.
Montanana is clear that M&A is no longer a volume game. It’s now about targeted capability building and market consolidation in regions where Datatec already has a foothold.
“We look for deals that accelerate our ability to deliver modern services,” he says. “Not just footprint or revenue, but strategic skills we can deploy quickly.”
Meanwhile, Datatec is also exploring ways to unlock value for shareholders through potential disposals or listings, but only when the timing is right. “We won’t sell a strong business at a weak point in the cycle,” Montanana says.
His confidence in Datatec’s intrinsic value is evident: he has been steadily increasing his personal shareholding. “We’re performing well, and we’re undervalued. There’s no doubt about that.”
Despite this forward momentum, the market hasn’t fully caught up. Based on the company’s latest earnings guidance, Datatec trades at a forward earnings multiple of just 13.5 — notably low compared with international peers in the ICT services and infrastructure space, many of which trade at multiples closer to 20 or more. This valuation suggests investors may still be viewing Datatec through an outdated lens: as a legacy networking distributor rather than a key player in AI-era enterprise architecture.
For investors looking beyond the buzzwords to the hard infrastructure powering the AI boom, Datatec may be one of the rare plays that combines global reach, sector relevance and an undervalued stock price. It’s not flashy. But it’s exactly the kind of foundational company that smart capital tends to notice — eventually.
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